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V1613-24 3 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption applicable if call option is exercised within two years of ceasing to be a primary residence

Consultants inquired whether the primary residence reinvestment exemption could be applied if their home is sold via a lease agreement with a call option to be exercised within one year. The DGT ruled that the exemption applies provided the option is exercised within the two-year period following the date the property ceased to be the primary residence.

The question raised

To determine whether the exemption for reinvestment in a habitual residence may be applied.

The DGT's ruling

For the transferred dwelling to be considered habitual, it must have been a residence for at least three years or meet the exceptions set forth in article 41 bis of the RIRPF. In the case of a purchase option contract, the transfer is understood to be carried out when the option is exercised. Therefore, the exemption is applicable if the option is executed within the two years following the date on which the dwelling ceased to be the taxpayer's habitual residence.

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